Students
ECON360 – International Finance
2018 – S2 Evening
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Ha Vu
Contact via 98508499
E4A 429
Wednesday 1- 2pm, and Thursday 11am - 12
Xiaoman Selma Huang
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|---|---|
| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
6cp at 200 level including (ECON200 or ECON201 or ECON203 or ECON204)
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
The aim of this unit is to analyse the structure, functions and operations of the international financial system and to evaluate its impact on the Australian economy. Topics include: international capital flows and balance of payments; analysis of foreign exchange markets, arbitrage and speculation; discussion of purchasing power parity and real exchange rates; currency and commodity swaps; corporate management of exchange rate risk exposure in spot and forward markets; currency futures and options; Eurodollar markets; models of exchange rate determination; exchange rate forecasting techniques; international trade finance; international taxation; and foreign and direct portfolio investments; and international capital budgeting.
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Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Class Test | 20% | No | Week 7 |
| Assignment | 20% | No | 4pm Wednesday 10 October |
| Final Examination | 60% | No | University Examination Period |
Class Test
Due: Week 7
Weighting: 20%
The test will take place in the first hour of the lecture in week 7.
Normal examination conditions will apply of course, and you must bring with you your official University ID card.
The test will be of 60 minutes, and a combination of true/false with explanation, problem-solving and short-answer questions.
Failure to attend the class test without the submission of an application for Special Consideration on the grounds of illness or unavoidable mishap together with the required supporting documentation (see the Policies and Procedures section for details) will result in a mark of zero for the assessment.
If the application for Special Consideration is accepted, the student will have to take a supplementary test which could be an oral test.
On successful completion you will be able to:
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assignment
Due: 4pm Wednesday 10 October
Weighting: 20%
The assignment will contain a number of discussion questions based on the provided articles. The assignment questions and related readings will be released on iLearn two weeks before the submission date.
Please note, designated reading material for the assignment may cover topics which have not been discussed in class.
The Assignment must be submitted in the relevant box in BESS by 4pm on Wednesday 10 October (Week 9).
Before the due date and time the assignment must also be submitted through 'Turnitin'. Assignments not submitted through this programme will receive zero marks.
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for Special Consideration is made and approved.
Severe penalties will apply for cases of plagiarism, up to and including exclusion from the unit.
On successful completion you will be able to:
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Final Examination
Due: University Examination Period
Weighting: 60%
This two hour final exam will be held during the University Examination period.
You are expected to present yourself for examination at the time and place designated in the University Examination Timetable. The timetable will be available in Draft form approximately eight weeks before the commencement of the examinations and in Final form approximately four weeks before the commencement of the examinations: http://www.exams.mq.edu.au/
The only exception to not sitting an examination at the designated time is because of documented illness or unavoidable disruption. In these circumstances you may consider applying for Special Consideration (See the Policies and Procedure section for details). If a Supplementary Examination is granted as a result of the Special Consideration process, the examination will be scheduled after the conclusion of the official examination period. Also, although the material coverage for the Supplementary exam would be the same as the final exam, it may include only essay-type questions.
You are advised that it is Macquarie University policy not to set early examinations for individuals or groups of students. All students are expected to ensure that they are available until the end of the teaching semester, the final day of the official examination period.
On successful completion you will be able to:
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Delivery and Resources
Required and Recommended Texts, and other resources
Required text: Jeff Madura, Ariful Hoque, and Chandrasekhar Krishnamurti, 2018 (Asia-Pacific edition), International Financial Management, Cengage Learning. ISBN: 978-017-038-613-5.
Recommended texts:
Geert Bekaert and Robert Hodrick, 2012 (2nd edition), International Financial Management, Pearson International. ISBN-13: 978-013-284-298-3
Alan C. Shapiro, 2014 (10th edition), Multinational Financial Management, Wiley. ISBN-13: 978-118-857-238-2
Useful resources for this course:
Banking Weekly Podcasts - Financial Times: podcast.ft.com/banking-weekly
www.bloomberg.com
www.theeconomist.com
www.bis.org
www.wsj.com
IMF Podcasts
Technology Used and Required
It is my expectation that the lectures of Econ360 will be recorded on the University’s i-Lecture facility. This can be found at: http://ilearn.mq.edu.au
The iLearn facility at this same site will also be the main vehicle through which unit communications will be made, and via which students can communicate with each other.
Unit Schedule
| TOPIC | CHAPTER (from the required textbook) | |
| 1 | Important players in international financial markets, and international flow of funds | Chapters 1 and 2 |
| 2 | Exchange rate systems and exchange rate determination | Chapters 4 and 5 |
| 3 | Relationships among inflation, interest rates and exchange rates | Chapter 6 |
| 4 | International arbitrage and interest rate parity | Chapter 7 |
| 5 | Currency derivatives | Chapters 8 and 9 |
| 6 | Forecasting exchange rates | Chapter 10 |
| 7 | Measuring and managing exchange rate Exposure | Chapters 11, 12 and 13 |
| 8 | Multinational capital budgeting and country risk | Chapters 15 and 16 |
| 9 | International equity and debt markets | Chapters 17 and 18 |
| 10 | International capital market equilibrium | Chapter 13 Bekaert and Hodrick |
| 11 | Trade finance methods | Chapter 20 |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct
Results
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
Academic Honesty
The nature of scholarly endeavour, dependent as it is on the work of others, binds all members of the University community to abide by the principles of academic honesty. Its fundamental principle is that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:
- all academic work claimed as original is the work of the author making the claim
- all academic collaborations are acknowledged
- academic work is not falsified in any way
- when the ideas of others are used, these ideas are acknowledged appropriately.
Further information on the academic honesty can be found in the Macquarie University Academic Honesty Policy at http://www.mq.edu.au/policy/docs/academic_honesty/policy.html
Grades
Macquarie University uses the following grades in coursework units of study:
- HD - High Distinction
- D - Distinction
- CR - Credit
- P - Pass
- F - Fail
Grade descriptors and other information concerning grading are contained in the Macquarie University Grading Policy which is available at:
http://www.mq.edu.au/policy/docs/grading/policy.html
Grading Appeals and Final Examination Script Viewing
If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade and/or viewing your final exam script please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.
Special Consideration Policy
The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A special consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level. The policy is available at:
http://www.mq.edu.au/policy/docs/special_consideration/policy.html
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
Discipline Specific Knowledge and Skills
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
Learning outcomes
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assessment tasks
- Class Test
- Assignment
- Final Examination
Critical, Analytical and Integrative Thinking
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Learning outcomes
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assessment tasks
- Class Test
- Assignment
- Final Examination
Problem Solving and Research Capability
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
Learning outcomes
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To equip students with tools that enable them to understand the risks that businesses and investors may face in the international market, to recognize and know when and how to hedge such risks.
- To prepare students to deal with real-world issues such as how fluctuations in exchange rates create risks and rewards for multinational corporations, and how those risks can be managed.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assessment tasks
- Class Test
- Assignment
- Final Examination
Effective Communication
We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.
This graduate capability is supported by:
Learning outcomes
- To allow students to truly understand what to do when confronted with an international financial decision.
- To provide students with analytical tools that enable them to research or engage with confidence in international business decisions.
- To extend students' numeric and writing skills which might help them to do a real data analysis and write a case-study report.
Assessment task
- Assignment
Changes since First Published
| Date | Description |
|---|---|
| 24/07/2018 | Required textbook |